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Disney Parks Expansion: Decision Analysis

Analyzing the strategic decisions and outcomes of Disneyland Tokyo Resort, Disneyland Resort Paris, and Hong Kong Disneyland for global market expansion. Learn from successes and mistakes, financial implications, cultural considerations, and government roles.

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Disney Parks Expansion: Decision Analysis

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  1. Allen Eiselin Risa Katayama Fantasy Dreams Ryan Lee Sary Churn Lacy Browne

  2. Is it a good decision? • Disneyland Tokyo Resort • Disneyland Resort Paris • Hong Kong Disneyland • Is it a good decision???

  3. Disneyland Tokyo Resort • No ownership • Control over design • Control over park operations

  4. Disneyland Tokyo Resort • #1 theme park in the world!!! • 95% of visitors came from Japan • Catered to the local preferences • Asian cultures love the western culture • Celebrates Japanese holidays • Incorporates Japanese, foreign, and western foods within the park • Creates its own identity within the collection of Walt Disney theme parks

  5. Disneyland Resort Paris • 49% Equity • Financial Burden • USD $5 billion total cost • USD $1 billion budgeted • Financial Aide • Loan payments deferred • Royalties payment deferred • Injections of USD $500 million from a Saudi prince

  6. Disneyland Resort Paris • Learning from mistakes • Compared Europe to Japan • Individualistic Vs Collectivistic • Did not adapt to the local culture • An American theme and culture • Different eating habits • French sit down and eat • Germans love to have beer with lunch

  7. Disneyland Resort Paris • Learning from mistakes • Local economic recession • Falling real estate prices • Huge debt caused by going over budget • Not much added value from Walt Disney Studios • It was not unique

  8. Hong Kong Disneyland • Goals • Gain access to the fast growing Chinese and South East Asian markets • Maintain global leadership • Keep competition in check • Expand entertainment, merchandise, film and video businesses

  9. Hong Kong Disneyland • Economics • Increasing population • Promotes a growing tourism industry • Recovering from deflation • High unemployment • Weakened Hong Kong Dollar

  10. Hong Kong Disneyland • Role of Hong Kong Government • Bring in Hong Kong Disneyland • 51% equity in Hong Kong Disneyland • Boost the tourism industry • Bring in more revenue • Reduce unemployment

  11. Hong Kong Disneyland • Role of Hong Kong Government • Infrastructure • Roads • Penny Bay Rail Link • Ferry piers • Walkways • Car parks • Police/Fire/Ambulance stations • Drainage and sewage works

  12. Hong Kong Disneyland • Law • “One country, two systems” • Growing political stability • Selected censorship • Out of control piracy/copy write infringement

  13. Hong Kong Disneyland • Finance • Projections are feasible and realistic • Corporation tax rate that Disney will be charged with is at 17.5% • Break-even point to be at a high level (cost of construction)

  14. Hong Kong Disneyland • Global Marketplace • Accessibility of Mainland China • Ability to attract U.S. Visitors • Impact of Internet sales

  15. Hong Kong Disneyland • Culture • Eating habits • Love to Eat seafood, a symbol of high standard food. • Holidays • Lunar New Year’s Day (22nd to 24th) • Spending Habits • Spend less money on food and devote their surplus income for leisure activities

  16. Is it a good decision??? • Learn from the past • Mistakes • Success • Hong Kong Disneyland • Accessibility • Chinese Market • Ripe economy

  17. Is it a good decision??? • Keys to success • 3p’s • Pride • People • Profit • Know the culture • Keep true to the Disney dream

  18. Is it a good decision??? • Yes!!!

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